megufeet
Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

If a Canada savings Bond is worth $6225 after 7 years, and was originally bought for $5000, what was the annual simple interest rate? Answer as a percentage.

[Formulas are,
[I = P, R, T]
[A = P + I]
[A = P(1 + R times T)

Sagot :

samuelonum1

Answer:

3.5%

Step-by-step explanation:

Given data

A=$6225

P=$5000

T= 7years

R=???

Simple interest

A=P(1+rt)

substitute

6225=5000(1+7r)

6225=5000+35000r

collect like terms

6225-5000=35000r

1225=35000r

r= 1225/35000

r=0.035

Hence the rate is 0.035*100= 3.5%

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.